Austria-Hungary in foreign economic activities of Serbia at the turn of the 20th century

Abstract

Introduction. The history of the peoples of the Balkan Peninsula still occupies a central place in global and domestic historiography. The rise of nationalism among “small” peoples in the region, coupled with the political ambitions of the great powers, led Europe to catastrophe in 1914. The mechanisms used by Austria-Hungary, Russia, Germany, Great Britain, France, and Italy to strengthen their positions in the Balkans continue to be of significant research interest today. Particular attention is paid in this regard to the recognition by European political leaders of the importance of combining military-strategic and economic approaches to consolidate their influence in the Balkans. Austria-Hungary was one of the first to understand the importance of intensifying foreign economic ties with the states of the region, including Serbia, whose ambitions posed a threat to the stability of the Habsburg Empire. Materials and Methods. The primary historical source is the reports of Russian diplomats serving in the embassies and consulates of Serbia and Austria-Hungary. The author utilizes historical-genetic, historical comparative, and historical-typological methods, as well as economic history approaches. Analysis. At the turn of the 20th century, Austria-Hungary, using the terms of the 1881 trade agreement with Serbia, controlled most of its foreign economic relations. Germany and other European states, particularly Russia, were significantly inferior to the Habsburg Empire in this regard. The Austro-Hungarian monarchy repeatedly used restrictions on Serbian exports to achieve its own objectives. On the one hand, this factor was explained by the desire of Hungarian farmers to limit the position of Serbian competitors in the empire’s domestic market, and on the other, it was explained by the desire to exert pressure on Belgrade in the event of disputes. This factor forced Serbia to address the issue of diversifying its own exports and developing its processing industry. Results. Austria-Hungary experience in developing economic ties with Serbia demonstrates the importance of this process for ensuring more stable political relations between Vienna and Belgrade. However, this arrangement only had long-term prospects when cooperation between the partners was based on mutual benefit, something that Austria-Hungary and Serbia periodically encountered problems with.